Investment Advisor Insurance

Free Quotes In Minutes

Get a free quote online with a soft credit pull.

#1 Provider in the U.S

As the nation's largest volume bond and insurance producer, we negotiate the best rates.

Money Back Guarantee

Your policy will be accepted, or we’ll refund your payment in full.

Investment advisors are responsible for advising their clients with the best possible steps they can take to not only preserve but continue to expand their wealth through investments. And if you end up giving your client a bad piece of advice, which ends up losing them money - they can hold you liable.

That’s why getting investment advisor insurance is recommended as it will free you from any financial liabilities in case you get sued. Instead the insurance company will step in and take care of all the costs associated with the accident.

How Much Does Investment Advisor Insurance Cost?

The premium you can expect to pay for investment advisor insurance will vary depending on the size of your business, the cover you’re looking to get, and the types of clients your business works with.

To give you a general idea, the average investment advisor in the U.S. pays around $220 per month, which comes to around $2,640 per year for professional liability insurance. This is also known as E&O insurance, and it covers your business in case you are sued on the grounds of negligence, malpractice, or for committing a professional mistake.

General liability insurance is another popular insurance policy for investment advisors. It costs an average of $35 every month or $420 per year, and provides cover against claims and lawsuits related to third party bodily injuries and property damage.

If your investment advisory business employs any staff - worker’s compensation insurance is required by law. You can expect to pay around $40 per month or $480 per year for it.

This way, if an employee falls sick or injured at work - the insurance company will take care of all their medical and hospital bills as well as lost wages.

What Types of Insurance Do Investment Advisors Need?

Investment advisors can take out a number of different insurance policies to protect their business from lawsuits and clams. Generally speaking, the level of cover you need for your investment company will depend on the size of your business, the type of clients you deal with, the number of employees your business employs, and other variables similar to those.

Below, you can explore some of the most recommended policies for investment advisors :

Why Do Investment Advisors Need Insurance?

Investment advisors are responsible for advising their clients on the latest and best possible investments that they can make to maximize the amount of money they can make from their investments while minimizing the risks involved.

And since the markets are very unpredictable, sooner or later, investment advisors can make a mistake, which ends up losing their client money. And if that were to happen - the investment advisory firm can be held accountable.

Without insurance in place - the investment advisor will be the one that has to cover the costs associated with the claim or the lawsuit, which can be financially devastating. And that’s why getting your investment advisory business insured is highly recommended.

In other cases, depending on the state you’re in - your business might be required by state law to take out a certain level of cover to ensure that everyone involved in doing business with your company is protected at all times.

Either way, getting your investment advisory firm insured is always a good idea as it not only frees you from any financial liabilities but it will also make unfortunate events much easier and less stressful to deal with.

From Our Customers